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Doesn't work that way, large companies have capital they allocate towards many things. It might impact budgets towards marketing, M&A, IT, future investments and research. Jobs and the increasing prices would be included- again its not direct. But you wouldn't be incorrect to assume it could impact job creation, or potentially increase cost of goods down the line as it depends on the company or industry.
Anyways, the original Trump theory was to lower taxes because of trickle down, which you actually mentioned. Companies could and would reinvest and it would lead to more jobs, taxes for the govt and ect. But it lead to bigger bonuses, company stock buy backs and some job growth, which padded the stock price and not what the intent or argument for the tax cuts - shift of money towards the top. So I get why Biden would target that, at 25% it is still competitive and a goal to shift back.
Agree! What gets me is these CEO’s who make $1 per year. However, get MILLIONS in stock options! Income tax is a much higher rate than capital gains. Unless, they change that like proposed. Although 45% in capital gains is not worth the investment risk. I think it would also collapse the markets. That would also hurt all their “Buddies “.
Imagine if the rate was still 39.6%? Unemployment would be doubled. Maybe even higher with the pandemic. I did get an income tax deduction. My income tax bracket went down 3%, so it was basically a 3% raise for my wife & I. I can’t complain. ***Although, within the past year my property taxes went up (Not the Feds fault, Suffolk County!) utilities went up, food, the list goes on.
Right! Taxes will reduce profits! Reduce earnings, reduce stock prices (Market at all tie highs). Unless it’s passed along to the consumer. Hence what I stated above ***
When the tax rate was 39.6% it was the 90's. A period of low inflation, massive tech innovation and one of the greatest periods of prosperity and growth in American history. The market was up 400+% during that time. We rolled out cellular phone networks, powerful personal computers, software, silicon chips and the internet and unleashed a tsunami of productivity and profits. We REDUCED the deficit and invested in infrastructure. That's what really happened with a 39.6% tax rate...but who's counting.
Agree! What gets me is these CEO’s who make $1 per year. However, get MILLIONS in stock options! Income tax is a much higher rate than capital gains. Unless, they change that like proposed. Although 45% in capital gains is not worth the investment risk. I think it would also collapse the markets. That would also hurt all their “Buddies “.
By setting up a min tax, targeting the market, capital gains, the step up basis of passing stocks and property towards upon death, removing the 1031 like kind exchange is even on the table now- they alter behavior and how we invest while collecting taxes in a timely fashion, but not necessarily whether we invest at all. The collapse of the markets is a worse case scenario and not something that likely would occur.
By setting up a min tax, targeting the market, capital gains, the step up basis of passing stocks and property towards upon death, removing the 1031 like kind exchange is even on the table now- they alter behavior and how we invest while collecting taxes in a timely fashion, but not necessarily whether we invest at all. The collapse of the markets is a worse case scenario and not something that likely would occur.
I can assure you if they eliminate 1031x it will be horrific for potential buyers. Me and other investors will just never sell and raise rents since less homes will come on the market. So many homes are sold using 1031. Opportunity zones will become a huge thing if it’s eliminated. Biden can’t eliminate that since it’s whole goal is to get people to invest in minority neighborhoods that are dumps. After 10 years in the OZ all cap gains used to purchase are forgiven. There is always a work around.
I can assure you if they eliminate 1031x it will be horrific for potential buyers. Me and other investors will just never sell and raise rents since less homes will come on the market. So many homes are sold using 1031. Opportunity zones will become a huge thing if it’s eliminated. Biden can’t eliminate that since it’s whole goal is to get people to invest in minority neighborhoods that are dumps. After 10 years in the OZ all cap gains used to purchase are forgiven. There is always a work around.
Investors are a small compared to all the big hedge funds buying up properties and raising rents already. Aside from that, after you depreciate your property there is only so much left to deduct you would be paying gains on rent that you either refinance over and over or just sell and put the money back into the market.
Trillions pumped into the economy! Of course stocks are doing great, fake money as you said! The hand is always on the trigger. Watching closely when to liquidate! Your right! Inflation will kill us!Along with more handouts! Someone’s gotta pay! I’m sure China Joe with DECADES of experience have it all under control! I think we are starting to agree!
Man, I sure do miss Orange Man!
China Joe's decades of experience allowed him to pass 2 massive bills in a week with a 70% approval rating. Guess he learned something in all that time. It's called cohesive messaging. People are just now remembering how refreshing that is after 4 years of circus/zoo/amusement park politics.
Investors are a small compared to all the big hedge funds buying up properties and raising rents already. Aside from that, after you depreciate your property there is only so much left to deduct you would be paying gains on rent that you either refinance over and over or just sell and put the money back into the market.
I strive to be like them! just on a smaller scale! The big guys are the issues, there are 100,000+ gx89's that own 4-10 rentals. As one we are nothing but as a group of small property owners we are huge. I have a "property exchange partner" After 10 years when depreciation starts to suck, we sell our similar homes as we are in same markets and use 1031 to restart the depreciation on the "traded" property. If it's gone opportunity zones will be the go to. The housing crisis isn't going to get better when no one is selling cause 1031x encourages the frequent movement of assets.
China Joe's decades of experience allowed him to pass 2 massive bills in a week with a 70% approval rating. Guess he learned something in all that time. It's called cohesive messaging. People are just now remembering how refreshing that is after 4 years of circus/zoo/amusement park politics.
China Joe's decades of experience allowed him to pass 2 massive bills in a week with a 70% approval rating. Guess he learned something in all that time. It's called cohesive messaging. People are just now remembering how refreshing that is after 4 years of circus/zoo/amusement park politics.
Of course the bill had a 70% approval rating! Who’s going to be against getting “free” money?
Of course the bill had a 70% approval rating! Who’s going to be against getting “free” money?
Still asking for a friend, WHY was it OK for the last gang to drop trillions, BEFORE covid, on welfare for the rich and connected, but a horrific crime against humanity for the new gang to drop LESS (so far, of course that wont last) on the middle class?! Why is the working class so self-loathing? Are you telling me you, me, Spanky and Twings are all making over a million a year?! Better yet, paying over a mill in taxes?! I have one friend who pays that and he's fine with going back to Clinton era rates, when we had a surplus and paid down the deficit. We cut our nose to spite our faces. 40 years of wealth building the richest into oblivion, give the middle a nickel and everyone screams in horror. So tired of the brainwashed nonsense. 1950's middle class stimulus built the "great" america. The world was hurting post war and we saw an opportunity to be the manufacturer of the future and we had a post war mentality of shared sacrifice, shared service and shared hunger for prosperity. We've now passed all of that on to Asia along with our manufacturing base. We built the world, now we can't make our own medicines or bandaids. Trickle down, endless QE, market manipulation and money printing killed it. Greed. Crony capitalism. Before it dies, at least let the little guy eat for a change.
Only in broken America is fixing a bridge or providing pre-K considered socialism. Everywhere else, it's just called being a developed nation that wants to stay strong. We're a lost cause in a moronic cold civil war amongst clueless nimrods. If I'm not being too subtle.
Last edited by monstermagnet; 04-30-2021 at 07:53 AM..
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